NEAL-NET’s approach to facilitate logistics
network in the sub-region
Seoul, Korea
October 2012
Northeast Asia Logistics Information Service Network 2012
Contents
1. NEAL-NET Establishment
2. NEAL-Net Technical Framework
3. NEAL-NET Development Status
4. Future Works
Northeast Asia Logistics Information Service Network 2012
NEAL-NET Establishment
Northeast Asia Logistics Information Service Network 2012 4
Volume of trade among
China, Japan and Korea(2010)
Importance of the Three Countries’ Trade
• 3 Countries’ population consists 74% of
Northeast Asia, 22% of World
• 3 Countries’ economic aggregate consists
90% of Northeast Asia, 20% of World
• 3 Countries’ volume of trade consists 70% of
Northeast Asia, 20% of World
• The three countries grew rapidly from 130
billion to 690 billion from 1999 to 2011.
China has become the largest trade partner
of Japan and Korea. At the same time, Japan
and Korea is 4th and 6th largest trade partner
of China. Japan and Korea are the most
important source of foreign investment. By
the end of 2011, the aggregated direct
investment of Japan and Korea to China is 80
billion and 50 billion
Ref: The trilateral cooperation (1999-2012) white paper of
China, Japan and Korea
日本 韩国
中国
World(Except CJK)
92472
297779 188410
999163
2369801
638008
Unit: Million USD,
: IMF, JETRO
Northeast Asia Logistics Information Service Network 2012 5
• Container throughput among China, Japan and Korea is 1.617 Billion TEU(2010), accounts for 32.12%%%%
of world
• Compare with Year 2001,China is 466.3% of 2001, Korea is 204%, Japan is135%
Vigorous Needs of Logistics Service
Unit: 1000TEU
Ref:Containerisation International Yearbook 2012
Container throughput grows rapidly
Northeast Asia Logistics Information Service Network 2012 6
Rank Port Name 2006 2007 2008 2009 2010 Share Growth Rate
1 Shanghai 21,710 26,150 27,980 25,002 29,069 5.80% 134%
3 Hong Kong 23,539 23,998 24,494 21,040 23,699 4.70% 101%
4 Shenzhen 18,469 21,099 21,414 18,250 22,509 4.50% 122%
5 Busan 12,030 13,270 13,453 11,980 14,194 2.80% 118%
6 Ningbo 7,068 10,257 11,226 10,502 13,144 2.60% 186%
7 Guangzhou 6,600 10,791 11,001 11,190 12,550 2.50% 190%
8 Qingdao 7,702 9,900 10,320 10,260 12,012 2.40% 156%
11 Tianjin 5,950 9,360 8,500 8,700 10,080 2.00% 169%
12 Kaohsiung 9,775 9,200 9,677 8,581 9,181 1.80% 94%
19 Xiamen 4,019 4,627 5,035 4,680 5,820 1.20% 145%
21 Dalian 3,212 4,642 4,503 4,552 5,242 1.00% 163%
26 Tokyo 3,969 4,060 4,156 3,810 4,284 0.90% 108%
29 Lianyungang 1,302 2,896 2,965 3,020 3,870 0.80% 297%
35 Yingkou n/a n/a 2,030 2,537 3,338 0.70% n/a
36 Yokohama 3,200 2,610 3,481 2,797 3,280 0.70% 103%
46 Kobe 2,413 2,310 2,556 2,247 2,556 0.50% 106%
47 Nagoya 2,752 2,604 2,817 2,112 2,548 0.50% 93%
• The three countries occupy 17 ports in the top 50 container port league in the world
Ref: Containerisation International Yearbook 2012
Vigorous Needs of Logistics Service
Northeast Asia Logistics Information Service Network 2012 7
To Solve the Problem of International Logistics
Information Sharing
Exp
Port
Marine
TransportConsigner Distribution Consignee
Road
Transport
Invisible from Consigner and Consignee’s viewVisible
Imp
Customs
Exp
Customs
Imp
Port
• Global trade requires real-time, controllable, high efficient and low cost logistics. Logistics information
should be shared in order to satisfy the management requirement of logistics players engaged to
improve competitiveness of trade and manufacturing.
• There many logistics players in international logistics activities. Information sharing barrier becomes
bottle neck of logistics business. Core problem is that there is no logistics information sharing
mechanism among countries, no logistics information sharing standards and no logistics information
sharing network.
Northeast Asia Logistics Information Service Network 2012 8
China-Japan-Korea establishes NEAL-NET cooperative mechanism to establish
sharing network, define logistics information sharing standard and promote
to establish logistics information sharing structure.
Establishment of NEAL-NET
Northeast Asia Logistics Information Service Network 2012 9
• On 2008, the 2nd Japan-China-Korea Ministerial Conference on Maritime Transport and Logistics was held in Japan, decided to set up a working group to carry out researches on the interconnection of logistics information.
• Mar 2010, the 3rd China-Japan-Korea Ministerial Conference on Transport and Logistics was held in China, which approved the proposal of establishing a Cooperative Mechanism on Northeast Asia Logistics Information Service Network .
• Dec 2nd 2010, Senior Government Officials of China, Japan and Korea meet in Hangzhou and signed the Memorandum of Understanding on the Cooperation Mechanism of Northeast Asia Logistics Information Service Network (NEAL-NET) and officially declared the establishment of NEAL-NET. The secretariat set in Hangzhou China.
Establishment of NEAL-NET
Northeast Asia Logistics Information Service Network 2012 10
Character :Character : A transnational, non-profit cooperative mechanism for logistics
information interchange, sharing and technical cooperation
ObjectiveObjective : Improve the overall logistics informationization level of Northeast
Asia by creating interconnection platform and unified basic exchange standard
OrganizationOrganization :Constituted by the Joint Steering Committee, the Council, the
Secretariat and the NEAL-NET members
NEAL-NET Features & Development History
Northeast Asia Logistics Information Service Network 2012 11
• Dec 3rd 2010, the 1st Council Meeting of NEAL-NET was held in Hangzhou. Reviewed and discussed the Work Report and Work Plan.
• Apr 25th-28th 2011, The 1st NEAL-NET Technical Meeting was held in Busan, Korea. Meeting
focus on discussion of the pilot technology framework of container status and dynamic vessel
status information sharing.
• Jun 19th-22nd 2011, The 2nd NEAL-NET Technical Meeting was held in Ningbo, China. The
Three Countries achieved the agreement standard of dynamic vessel status and MOU was
signed
• Oct 18th-20th 2011, the 3rd NEAL-NET Technical Meeting was held in Yokohama Japan. Early
works of dynamic vessel status interface were summarized, and the relevant issues of the
interface validation were planned. The standard of container status sharing was drafted. The
discussion on the user management and authentication mechanism was started.
NEAL-NET Features & Development History
Northeast Asia Logistics Information Service Network 2012 12
• During the 2nd ASEM Transport Ministers’ Meeting, the initiative, which is to establish a corresponding cooperative mechanism, carry out technical exchanges on the standards for information networks and explore the possibility of the interoperability between Asia-Europe networks on the basis of the NEAL-NET, was agreed and incorporated into the conference declaration and action plan, namely the Declaration of the 2nd ASEM Transport Ministers’Meeting On Green Secure and Efficient Asia-Europe Connection and ACTION PLAN on Facilitation of Movement of Goods and People Between Asia and Europe.
• Dec 2011, NEAL-NET Logistics Information Sharing Service Interface Opening Ceremony was
successfully held in Hangzhou.
• Mar 2012, The 5th NEAL-NET Technical Meeting was held in Jeju, Korea. User Management and Container Status Information Sharing issues were discussed.
• Jun 2012, The 6th NEAL-NET Technical Meeting was held in Beijing, China. Container Status Information Sharing standard was drafted. User Management and port expansion issues were discussed
• Sep 2012, The 1th EU-Asia Cooperation Meeting and the 7th NEAL-NET Technical Meeting was held in Hangzhou, China. Asia-EU logistics information sharing cooperation scheme was discussed. Working schedule and Unified User Management issues were finalized
NEAL-NET Features & Development History
Northeast Asia Logistics Information Service Network 2012
NEAL-NET Technical Framework
Northeast Asia Logistics Information Service Network 2012 14
Work Ethic of NEAL-NET
1. NEAL-NET considers the logistics information sharing with a high level view throughout
entire supply chain. Based on the analysis of logistics business of supply chain, NEAL-
NET defined public logistics nodes, such as highway freight stations, airports, railway
freight stations and ports.
2. The major task of NEAL-NET is to define the interface standards of each public logistics
nodes. And then promote the logistics nodes to reform their interfaces in accordance
with these standards to realize cross nodes data sharing.
Northeast Asia Logistics Information Service Network 2012 15
NEAL-NET Standard
Web service / SOAP
EPCIS
NEAL-NET
• NEAL-NET’s logistics information
sharing standards including data
elements, code sets and interface
format. It is called NEAL-NET
Standards.
• NEAL-NET Standards adopt a
framework which is suitable for
status sharing.
• Interface using Web Service and
SOAP message for data
transmission.
Northeast Asia Logistics Information Service Network 2012 16
Event based Data Sharing Model
ETA ATA UnloadingContainer
DepartureCy-Open
Containe
r EnteringCy-Cut Loading ATD
Import Voyage Export Voyage
Container Property
Vessel PropertyVessel
Property
Vessel
Property
Vessel
Property
Container
Property
Container
Property
Dynamic Vessel Status Sharing Interface by end of Dec, 2011
Container Status Sharing
Interface by end of 2012
Events
• From Sep, 2010, under the leadership of MOT of China, Japan and Korea, NEAL-NET starts the research of port information sharing and finally defined dynamic vessel status and container status sharing standards.
• Container status tracking is a typical case of tracking business. More than 9 basic events
was abstracted and also technical framework was designed.
• ETA, ATA,Cy-Open, Cy-Cut, ATD are vessel related properties.
• Unloading, Container departure, Container Entering, Loading are container properties.
Northeast Asia Logistics Information Service Network 2012 17
NEAL-NET Standard Usage Scenes
• There are 2 basic usage scenes of NEAL-NET Standards:
– Scene 1. Query user directly call ports’ interface which already adopted NEAL-NET
Standards
– Scene 2. Query user query data by using information provider’s proxy service, after
data integrated then feedback to query user.
Port A Port B Port C
Scene 1
Direct
Access
Query
forwarding
and feedback
Query User
Value Add
Service Provider
Port D
Scene 2
Customs
Logistics
Compan
y
……..
Northeast Asia Logistics Information Service Network 2012 18
Pros of the Standard & Information Sharing Architecture
Reduce logistics
information sharing
cost
Timeliness data
query
Accuracy of data Security of data
BenefitsBenefitsBenefitsBenefits
Warehouse
/Plant
Warehouse
/Plant
MarineRoad transport Road transport
Container
Terminal
Container
Terminal
Surface
Aviation
Marine Container Transport
Northeast Asia Logistics Information Service Network 2012 19
NEAL-NET Working Phases
• At current stage, NEAL-NET cooperation mainly focuses on International
Marine Transport.
• In the near future, logistics information sharing could be expanded to aviation
and surface transport area
Northeast Asia Logistics Information Service Network 2012
NEAL-NET Development Status
Northeast Asia Logistics Information Service Network 2012 21
NEAL-NET Expedites Port Service Coverage Extension
• Korea declares to expand NEAL-NET Port Logistics Information Sharing Service
Coverage to Gwangyang and Incheon Port by the end of 2012
• Japan declares to expand NEAL-NET Port Logistics Information Sharing Service
Coverage to Kawasaki, Osaka and Kobe port by the end of 2012
Northeast Asia Logistics Information Service Network 2012 22
Domestic Ports Expansion Work Started
• March 1st-5th , For the purpose of boosting the application of interconnection,
promotion and training activities are carried out for the 13 pilot ports (except Ningbo-
Zhoushan port) in accordance with the Notice of Effectively Promoting the
Development of NEAL-NET that issued by MOT of China.
• Introduced NEAL-NET standards includes
strategy, methodology, abstract
processing, data elements, Vocabulary,
and so on.
• Introduce developing process and
experience in Ningbo port.
• Present effort in Ningbo Port and
application in enterprises.
• Communicated developing requirement
from MOT.
Northeast Asia Logistics Information Service Network 2012 23
Domestic Ports Expansion Work Started
No. Port Name Report work planPlan completion time
(Dynamic Container Status)
1 Yingkou Port Reported July, 2012
3 Yantai Port Reported August, 2012
4 Weihai Port Reported August, 2012
5 Qingdao Port Reported August, 2012
7 Tianjin Port Reported August, 2012
10 Ningbo Port - Already finished
11Guangzhou
Port Reported August, 2012
13 Shekou Port Reported August, 2012
14 Xiamen Port Reported August, 2012
• China side expedites ports interface reformation to expand NEAL-NET Port Logistics Information Sharing Service coverage.
Planned to provide service after link test by the end of 2012
Northeast Asia Logistics Information Service Network 2012
Future Works
Northeast Asia Logistics Information Service Network 2012 25
• In order to finish container state information sharing pilot in 2012, we need to
complete the following two aspects:
• To define and get agreement on the standard of container state
information sharing
• Formulate a appropriate user registration and authentication mechanism
for pilot project.
NEAL-NET Core Objective in 2012
Northeast Asia Logistics Information Service Network 2012 26
International CooperationInternational CooperationInternational CooperationInternational Cooperation
• NEAL-NET is open system to share logistics information between countries.
Your are kindly welcomed under NEAL-NET cooperation mechanism.
• Continue to perform Asia-EU logistics information sharing cooperation experts
communication, it is proposed that the 2nd EU-Asia Logistics Information
Sharing Cooperation Workshop to be led by European Union and to be held in
the early of 2013 in Europe. The core of the workshop is to study the needs
and areas of cooperation as well as the working mechanism in a much more
detailed level.
EU
• Singapore government delegation visited NEAL-NET China at April, 2012. Singapore delegation highly appraises the logistics information sharing framework of NEAL-NET, wish to join the cooperation mechanism.
Singapore
Other
Northeast Asia Logistics Information Service Network 2012
Northeast Asia Logistics Information Service Network
Thank You!